Suppose you had a 12/31/12 profit sharing plan that added salary deferrals and safe harbor match features effective 10/1/2012.

The employer will fund the SH match after December 31. They will not make any profit sharing contribution.

The SH match of course will be based on salary deferrals from 10/1/12 - 12/31/12. Will it also be limited to salary from 10/1/12 - 12/31/12 or could it be based on salary for the entire year?

Thanks

A plan allows participants to defer up to 80%. Additionally it allows them to make a separate election to defer up to 80% on a bonus. If a participant decides to only defer lets say 10% of their bonus, can the plan keep that election in place until the participant wants to change it or does the sponsor need to have them fill out a new election whenever a bonus is issued?

A SHMAC Plan is terminated on 6/30/2012 for business reasons. In fact, the employees were also terminated on the same day!

When I read through the IRS guidance it says "In addition, a plan that is amended during the plan year to reduce or suspend safe harbor contributions...must prorate the otherwise applicable compensation limit..."

Is the termination of the plan considered an amendment during the plan year to suspend contributions? I'm trying to determine if I need to reduce a participant's compensation for allocation of the SHMAC.

Thanks.

I used to work for a law firm-TPA firm that prepared plan conversion amendments.

This was prior to the 411(d)(6) regs- I do not recall whether it was DB to PS or PS to DB.

We are speaking of a sole proprietor with no employees.

Since we are speaking of an owner-only plan, what is the opinion??

If one is making a maximum allowable DB plan contribution for plan year and intends on making a 6% net schedule C income profit sharing contribution to a DC plan, as well, can that 6% additional contribution be made to a previously established SEP-IRA that hasn't been funded for the past 2 years or need one set up a 401(k) plan to make that 6% contribution?

Thanks in advance!

SR

The Alternate Payee's Social Security Number and Date of Birth were referenced in a QDRO. However, the SSN was one digit off and the DOB was one year off.

Since only the A/P's name and address must be specified, does a new DRO need to be drafted?

"Treasury can tap a range of federal funds that benefit government employees — most critically, the money-market fund in which many federal employees invest as part of their thrift savings plans."

A qualified plan is terminating and one of the participants who terminated many years ago cannot be located - her last known address is not valid and her SS# is not known. The amount due to the participant cannot be rolled over to a safe harbor IRA since a SS# is needed to do so, and presumably the SSA locator service cannot be used. The amount due is about $1,400, so hiring a private service to locate the individual may not be prudent since that would probably consume the majority of the benefit due, and it would seem very unlikely she would be found given the lack of available info. Are there any better options other than 1) escheating the amount to the state, or 2) paying it all out as 100% withholding? Are there any financial institutions that can set up an IRA without a SS#?

Is it permitted to sell a stock at a gain from my taxable account and buy it in my Roth IRA? Its not a wash sale, as there is a gain. I would conduct the trade on the NYSE or NASDAQ. The sell and buy shares may be the same as the stock is thinly traded, but then again they may be different. However, the price would be a market price. I do not want this transaction considered self dealing. I believe this is discussed in USC Sec. 4975.

I need help!!

I have a plan where the top 20% election is written into the Plan Doc. Based on the 2009 data, there would be 44 people in the top paid group for 2010.

At the end of 2010 when the 401k discrimination tests are run there are only 38 HCEs in the test. The test passes. I thought that it was ok to leave the test as is...the client's attorney (not an ERISA attorney) is saying that we need to add in another 6 people from the NHCE group to have 44 in the upper group because the top paid election is in the Plan Doc.

I thought the top paid group election was utilized in order to "reduce" the number of HCEs that have to be considered for the 401k testing which would therefore "help" the test when necessary.

If I had 50 people in the HCE category at the end of 2010, I could consider only the top 44 in my HCE group for the 2010 test.

Am I ok with only 38 HCE in my 2010 ADP/ACP testing?

Thank you in advance.

I've been inactive for ages. I've missed the discussions. Perhaps I once again will become active . . .

Question: Can 2 plans with different eligibility standards (one with a y/s wait, and the other with immediate entry) be aggregated for 410(b) & 401(a)(4)?

Facts (in brief): Only NHCEs are in the plan with immediate entry, while the plan with primarily HCEs has a 1 y/s requirement. When testing the HCEs' plan (for 410(b), ADP & PS non-discrimination), I think I cannot use the 1 y/s requirement of that plan--but I can't find the reg stating that. Does anyone know where it is--or am I once again hallucinating?

Can an employer terminate the non-elective safe harbor portion of its plan (without having to meet the substantial business hardship requirement) if it terminates its safe harbor prior to the start of the plan year, but after the safe harbor notice has been sent?

For the last two years, due to ERPA, I have been buying two webinars from ASPPA (primary and secondary) for myself and the other ERPA in the office.

Is this necessary? I just looked at the 8554-EP and it seems that all they want to know is the number of total credits and the total of ethics credits in each reporting year. Do I need a certificate in my own name, or, provided I don't lie (which I do not), is it enough to keep my own listing and support for the CPE I take? For example, if we pay for one web-inar, and listen together, can we both claim the CPE on the 8554? The instructions do not seem to stipulate any such requirement.

I found this in Circular 230 as part of the recordkeeping requirements, perhaps this is why it is required:

"The certificate of completion and/or signed statement of the hours of attendance obtained from the continuing education provider."

This is the language in Plan Document regarding the allocation of nonelective contributions:

Nonelective Contributions.A discretionary amount to each Participant, which amount, if any, shall be a Nonelective Contribution. The Employer shall provide the Administrator with written notification of the amount of the contribution to be allocated to each Participant.

Gateway Contribution.In addition to any Nonelective Contribution described above, the Employer may make an additional Nonelective Contribution ("Gateway Contribution") in an amount necessary to satisfy the minimum allocation gateway requirement described in Section4.4(b)(8).

Is there a requirement that I must Cross-test and provide gateway allocations, if the plan otherwise meets 410(b) and 401(a)(4)?

For example, assume I have many HCEs in a plan and I only want to benefit a few with a nonelective contribution and the plan otherwise meets the ABPT on a benefits basis, can this be done without having to meet gateway or other requirements?

I know of another firm that is doing it this way and not providing a gateway minimum. A few HCEs are getting a 13.2% allocation, while others NHCEs are getting as low as 1%.

Thanks.

Does anyone have a link or file they can send me for this table?

I have been trying to find it, but have not been successful.

Thank you!

We have a participant in a Defined contribution plan (still employed, plan allows for in-service distributions and he is eligible) who wants to convert part of his account into a Roth IRA (plan also allows for Roth). We are not sure at this time if we are looking at Profit Sharing money, salary deferrals, or other ER money (match, Safe Harbor, QNEC).

Could someone please enlighten me on the mechanics of converting pre-tax contributions to Roth IRA while leaving the money in the plan? Is it as simple as just issuing a 1099-R for the amount involved and reclassifying the account balance as Roth?

Folks,

Have found the input on this site invaluable and hope you can help me with my particular situation. I have done extensive research online and spoken with my accountant and benefits manager and no one can seem to give me a final, definitive answer.

I have two employers, one of whom offers a 403(b) and an unrelated employer who offers a 401(k). Because I am transitioning between jobs, but still working at both employers, I am contributing a sufficient amount to both plans that will guarantee me an employer match. My separate salaries support the amounts contributed, described below:

For 2012, I have contributed approximately $10,200 to the 403(b) plan with a $7600 match from my employer. I have contributed $6,800 to my 401(k) plan and have received matching funds of $27,000k under a special arrangement my particular group has (match is based on overall salary, not on my particular contributions).

Thus, I have personally contributed $17,000k, the maximum allowable for 2012. That would leave $33,000 of employer matches to get me to the total of $50K maximum total contributions (under section 415 limitations) for 2012, if it was only for one employer. But because I have two separate employers and the matches were not coordinated, I have gone over the $50K limit with total contributions of ~$52,000K.

Because these are two separate unrelated employers, have I violated (inadvertently) the section 415 limits and must I do a corrective distribution or am I ok?

Again, I have not exceeded the $17k in personal contributions...it is only on the employer match side that limits have been "exceeded".

Any advice I can get would be greatly appreciated!

Happy Holidays to all.

I was recently approached by a CPA who as a client that just recently was talked into and started a ROBS arrangement. He wanted to purchase an insurance agency for about $250,000 and didn't have the ready assets. He did have that amount in a 401(k) from a prior employer. Using this "ROBS" approach, he rolled his 401(k) balance over into a newly created 401(k) plan and had the plan purchase $250,000 of stock in his newly created company with the proceeds going to him to buy of business. As a consideration, the CPA told me that this client is extremely conservative when it comes to his money.

I am not that familiar with these arrangements, but, based upon my research, these arrangements are not "per se" illegal. They are, in my estimation, mindfields of potential prohibited transaction violations.

Here are my questions:

1. Has anyone has any experience with these arrangements and, if yes, what were your reactions and conclusions?

2. The prospective client started this 401(k) containing these provisions just a couple of months ago. What would

be the best way of getting him out of this arrangement? Is there anything that can be done before the end of the year

to mitigate potential problems? I don't think that he has another $250,000 lying around to reverse this transaction.

3. Assuming this this arrangement is already fraught with PT and potential PT violations, what would be the best and the worse this client could do with regard to this plan?

Thanks

Small plan ultimately had delinquent contributions in 2012 which resulted in a total of $1.25 in Lost Earnings. We will be checking yes on the 5500 but is the Lost Earnings so small that the deposit can be skipped? Less than $1.00 of it goes to non-owners.

If a company exceeds the share limit under its LTIP, what, if any, corrective action is it required to take? Is there any liability it faces from the SEC or the one of the exchanges?